Cost of living crisis still hurts for many

Debt advice is offered for low-income households

A group of churches and debt advisers in Forth Valley is warning that the cost of living crisis is far from over for those on low incomes.

Christians Against Poverty (CAP) offer free debt advice and money coaching.

They say their latest Yougov polling shows that in Scotland a quarter are struggling with debt repayments - 26 per cent reported feeling burdened by the pressure to keep up with repayments on their credit cards, bills and other loans.

Many people are also using credit to pay for monthly bills around one in 10 (nine per cent) of adults in Scotland say it’s the main reason they’ve used a credit card in the last six months.

Thousands continue to sacrifice essentials - 18 per cent skipped meals at least once a month and 38 per cent have been limiting their electricity or gas usage.

Some are running out of options - one in five (21 per cent) say it wouldn’t be easy for them to borrow £200 in an emergency situation and one in 10 (11 per cent) can’t get access to a credit card due to their credit score.

Christian Against Poverty’s Forth Valley team based at Stirling Baptist Church say many people on low incomes in the area don’t have enough money to stay out of debt and afford the essentials they need to live.

It comes as CAP’S new report ‘Pushed under, pushed out’ is sounding the alarm about the growing number of households across the UK who are being pulled into debt.

CAP’S Forth Valley Debt Centre manager Fiona Welsh said: “This new report shows what we are already seeing on the ground at Christians Against Poverty here in Forth Valley, that many households we visit just don’t have enough income to cover their essential costs right now.

“The ‘Pushed under, pushed out’ report has looked at 10 years worth of data and shows four out of five people with income below the minimum level were in arrears due to household bills. The report also found those in low income jobs were often most affected and that employment doesn’t necessarily protect against the impact of low incomes and debt.

“At CAP Forth Valley we find the main reason for debt is living on a low income alongside other aspects that impact people’s finances. It could be that they have been made redundant, are going through a relationship breakdown, suffered an injury or long term illness or a loved one has passed away, resulting in less household income.

“These types of often unexpected or unplanned situations can cause both emotional and financial pain.”

CAP’S local team in Forth Valley are encouraging local businesses, organisations and community groups across the area to put up CAP’S ‘Improve your finances’ poster to raise awareness of the free online and local help available to those struggling financially.

Fiona added: “The stigma around debt and poverty means many people feel ashamed and as a result don’t come forward for help. All of us living here in Forth Valley can play our part in changing that by working together to support and encourage our friends, family and people in our community who are struggling financially. We can show them love and understanding and point them towards free, friendly and professional help.

“Here in Forth Valley, Stirling Baptist Church and other churches partner with Christians Against Poverty to run free debt advice and money coaching because we are determined to help local people improve their finances. We do this because as Christians we believe in taking practical action to show love, care and compassion to everyone in our community, especially those in need.

“CAP’S website also has loads of free support and guidance and you can find out what face to face services are running in our area at capuk.org/help.”

For more information contact Fiona at fionawelsh@capuk.org.